The Effects of Multinational Corporations on Foreign Direct Investment (Essay Sample)

The Effects of Multinational Corporations on Foreign Direct Investment
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The Effects of Multinational Corporations on Foreign Direct Investment
Multinational corporations are among the most critical non-state actors influencing international politics and economics. Notably, Foreign Direct Investment (FDI) measures the value of resources owned by multinational companies abroad. The mounting influence of multinational businesses sparks a similar effect on FDI. Arguably, multinationals create an economic stimulus in host nations by growing the volume and value of resources owned abroad, stimulating capital inflows, and facilitating international credit access.
Multinational companies influence FDI by growing the amount and value of their foreign-owned resources. Companies seeking to cement their competitive advantages expand their operations beyond the borders of one nation. According to Loukil (2016), the internationalization of a company’s operations is a creative way of adding value to its revenue streams,